TiVo Corp (NASDAQ:TIVO) stock was up on Tuesday following a positive ruling in a patent case.
The ruling was in favor of TiVo Corp and found that Comcast Corporation (NASDAQ:CMCSA) had violated its patents. The final ruling will take place on Sept. 26 and the current ruling is likely to hold.
With the ruling in favor of TiVo Corp, it is possible that Comcast Corporation will attempt to reach a settlement in the lawsuit. The ruling concerns set-top boxes that have been made by the company. The ruling means that CMCSA may not be able to sell its devices.
The lawsuit against Comcast Corporation had to do with two patents that were connected to its set-top box devices. These patents concern the ability to set recording for shows remotely. The ruling determines that CMCSA violated section 337.
Following news of the ruling, Cowen analyst Robert Stone said that the company could see as much as an 80% upside. He notes that part of this is due to the case with Comcast Corporation, but also says that the stock is just plainly undervalued, reports MarketWatch.
Stone’s statement concerning the events reaffirms his “Outperform” rating for TiVo Corp. The analysts also continues to keep a price target of $30 for the media and entertainment company’s stock. TIVO also has another ongoing lawsuit that concerns eight of its other patents.
TIVo stock was up 10% as of Tuesday afternoon, but is down 13% year-to-date. CMCSA stock was up slightly.